Pentland Ferries in Northern Isles ferry service legal challenge

DETAILS of the next contract to operate the Northern Isles Ferry Services have been published, however the procurement is facing a legal challenge from Pentland Ferries.

The Invitation to Tender document, which is now available on the Transport Scotland website, was issued to three potential bidders last month: CalMac Ferries Ltd, Förde Reederei Seetouristik GmbH & Co. KG (FRS), and Serco NorthLink Ltd.

Final tenders are currently scheduled to be submitted by the end of April, with a view to awarding the contract in August.
The eight year contract is estimated to be worth around £370m.

Minister for energy, connectivity and the islands, Paul Wheelhouse, said on Thursday: “We can now publish details of the next contract to operate the ferry services to and from the Northern Isles.

“The documents outline the in-built flexibility of the contract, allowing the services to be amended to reflect future changes in demand across the important sectors of the islands’ economies – tourism, fishing, food and drink, aquaculture and farming.

“Scottish Ministers will retain control of all of important issues, such as fares, timetables and routes to be served, through the public service contract. The services are being tendered as a single bundle.”

The rural economy and connectivity committee has also been advised that Pentland Ferries has lodged a Petition for Judicial Review of Scottish Ministers’ decision to subsidise the provision of public services in relation to Northern Isles Ferry Services. The company has also lodged a related complaint with the European Commission.

Commenting on the legal challenge, Mr Wheelhouse said: “There is a limit to what I can say at this juncture, out of respect for the Judicial Review process, other than to say that we will robustly defend our position in relation to the continued provision of subsidy in support of these lifeline ferry services. The procurement process will continue as planned, pending the outcome of the Judicial Review and complaint to the European Commission.”

A statement from Pentland Ferries – whose new ship was due to be officially named today – on the issue said: “We are proud to have built an efficient, innovative and affordable ferry service for the people of Orkney and for those who visit our islands. The level of market distortion imposed by Scottish Ministers is now at a critical point where it threatens the future of this provision. All we have ever asked for is a level playing field upon which to operate and at this point we have no resort but to take measures to safeguard the vital transport link that we have worked hard to create.”